How To Start POS Business In Nigeria

How to Start POS Business In Nigeria

How to Start POS Business In Nigeria

POS Business is also known as agent banking. This involves the transfer and withdrawal of funds, recharge card sales, bill payments like GoTv, DSTV, Startimes, NEPA Bill services, and other utility bill payment services.

This business is an expansion of services offered by financial organizations like banks which provides convenience to customers. Therefore, the fee customers pay is called a convenience fee.

The central bank of Nigeria, in a section for financial inclusion, has created this opportunity as an avenue to build wealth.

ReadHow To Register Your Business In Nigeria Step-By-Step Guide

To succeed in this business, you should consider setting it up in areas where there’s a limited amount of banks or ATMs. 

People will always need cash for different reasons and will be happy to go to where they’re sure of quick service at a low cost. 

Benefits of POS business in Nigeria

  • Create job opportunities for the unemployed
  • Provide service to a wider range of customers
  • Satisfy customers
  • Reduce the crowd at bank branches
  • It has helped to achieve financial inclusion
  • Quick money transaction has been enabled
  • Traveling with a large amount money has been reduced
  • Time and energy have been saved

Is POS business lucrative in Nigeria?

Over time, businesses that engage in trading money have proven to very profitable likewise the POS business. 

The business involves liquidity, this means that you must have cash available at all times to give out. Because customers do more of withdrawals than fund transfers.

So YES. POS business in Nigeria is lucrative.

The services you’ll be offering includes but not limited to;

  • Withdrawals
  • Fund Transfers
  • Bill Payments
  • Sales of Recharge Card Vouchers or Top Up to all networks
  • In some cases, Account Opening

Aside from the Recharge which is free from charge, other services attract fees. 

Ensure your charges are not on the high side otherwise you could be competing with other vendors or harboring competition in the future.

Once you’ve secured a strategic position where there’s a limited amount of ATMs around, customers will consider you for much quicker service.

How To Start POS Business In Nigeria (POS Business Set-Up Checklist)

To simplify the process, I’ve gathered so crucial points that must be addressed to ensure you have your operations running.

1. Host

This is the financial institution whose services you’ll be extending to your customers.

Listed below, are some good hosts you can work with;

  • Kudi
  • Opay
  • First bank of Nigeria
  • Zenith
  • FCMB
  • Paga
  • Quickteller
  • Access bank

2. Location

As mentioned earlier, your location has to be very strategic. It plays a great role in the success of your business.

Aside you setting up in a place with a limited amount of banks or ATMs, your workplace should be enough to contain your customers, furniture dividers between you and your customers. 

In a nutshell, set up a place that’ll be convenient to carry out transactions.

3. Get a POS Machine

The majority of your customers will like to do withdrawals, therefore, a POS machine is very essential.

A brand new POS machine sells for around N85,000 – N100,000. First Bank gives free POS machines but you must meet their requirements. 

To get one visit any First Bank branch close to you and get more details about agency banking

4. Get Banners

For your business to be known, you need to create awareness. You won’t make sales if people don’t know the goods or services you offer. Hire a good graphic designer to get you a well-designed banner.

ReadHow To Start Your Own Ecommerce Business Easily

PROs & CONs Of POS Business In Nigeria


  • It’s very profitable
  • You earn commissions from Banks. This is the aside the convenience fee customers pay
  • It’s not a complex business
  • The demand for the service is high which tantamount to more money
  • It’s sustainable because the need for these services is endless.
  • It’s not crowded yet


  • Power or Electricity Issues: In some rural areas, electricity isn’t stable while some don’t have at all. So you ‘ll spend money on fuel to power your generator set to ensure your business is running.
  • Network Issues: Sometimes the POS machines have network issues that can impair transactions but there’s a way to you can make use of your phone to mitigate the problem and avoid embarrassment.
  • Theft/Robbery: This is a common problem with any business and as usual to avoid such situations, security measures must be put in place. You can consider a guard, CCTV, etc. This typically depends on your budget.
  • Inability to control the crowd: As the business ages people tend to be very familiar with your business and if you don’t the right mechanism to control the crowd you’ll lose it.

How Profitable Is POS Business In Nigeria

Let’s for an instance you transact with 40 people in a day and your service charge is N150 each, which will give you N6,000 for that day. 

In a month you’d have made N150,000. This is could be more but with experience and knowledge gathered, if you set up correctly you earn a lot more.

Remember, you can also decide to include other services like recharge card sales, cable, and education voucher sales.

How Much Is Needed To Start POS Business In Nigeria

This typically depends on the services you’d be rendering and also the type of POS you’d like to acquire. 

If you’re getting it from a bank, you’ll need a minimum of N100,000 for transactions. This aside the shop rent.

But if you’re buying from an agency company then you need around N300,000. So N100,000 can handle the POS cost while N200,000 will be for withdrawal transactions. Please bear in mind that you need cash in your bank account for transfers.

In this business, there is no harm in starting small then expand as the need for your services increases which invariably means you’ll also increase the capacity of your capital.


Owning a POS business can earn you more than N5,000 daily and more than N200,000 monthly wherever you’re located.

It’s a good business idea with a good business model as well. You should consider this as an entrepreneur. You can also run it as a side hustle. 

It pays well.


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